NOV Inc. (NOV)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,583,000 | 7,237,000 | 5,524,000 | 6,090,000 | 8,479,000 |
| Total current assets | US$ in thousands | 5,840,000 | 5,493,000 | 4,902,000 | 5,209,000 | 6,113,000 |
| Total current liabilities | US$ in thousands | 2,435,000 | 2,437,000 | 1,910,000 | 1,867,000 | 2,247,000 |
| Working capital turnover | 2.52 | 2.37 | 1.85 | 1.82 | 2.19 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,583,000K ÷ ($5,840,000K – $2,435,000K)
= 2.52
NOV Inc's working capital turnover has fluctuated over the past five years. The ratio stood at 2.52 in 2023, indicating that the company generated $2.52 in revenue for every dollar of working capital invested. This represents an improvement compared to the previous year where the ratio was 2.37.
In 2021, the working capital turnover was 1.85, showing a decrease from 2020 (1.82) but an increase from 2019 (2.19). This suggests that NOV Inc's efficiency in utilizing its working capital varied over the years, with a notable peak in efficiency in 2019.
Overall, the trend in NOV Inc's working capital turnover indicates some degree of variability in how effectively the company is using its working capital to generate revenue. Further analysis would be necessary to understand the specific reasons behind the fluctuations in this ratio over time.
Peer comparison
Dec 31, 2023